Capstone - Ch 7&8

In the United States, the time period for the right to exclude others from the use of a patented technology is ________ from the filing date of a patent application.

20 years

What is an invention?

the transformation of an idea into a new product or process

Ira can be categorized under the late majority customer segment. Which of the following behaviors is he most likely to exhibit?

He will prefer to buy from well-established brands rather than unknown new ventures.

Which of the following is a drawback of vertical integration?

It increases the potential of legal repercussions. It

When firms innovate by leveraging existing technologies into new markets, they are said to be involved in

architectural innovations

The managers at Camphor Plastics decided that their firm needed to diversify because of overall falling sales and lower performance in one sector. How does diversifying compensate for the lackluster performance in this sector?

by having higher performance in another sector

Win Goods Inc. is a large multinational conglomerate. As a single business unit, the company's stock price is estimated to be $200. However, by adding the actual market stock prices of each of its individual business units, the stock price of the company as one unit would be $300. What is Win Goods experiencing in this scenario?

diversification discount

The customers entering the market in the growth stage are primarily

early adopters

Although Mountaintop Electronics still sells its DVD players, a product in its decline stage, the investments made by the company on improving or marketing the product are very low. The company has allocated the least amount of human and financial capital to this department. Which of the following strategies has Mountaintop Electronics adopted in this scenario?

harvest strategy

The four-step innovation process ends with

imitation

Which of the following lists the stages of the industry life cycle in the correct order?

introduction, growth, shakeout, maturity, and decline

Decisions relating to the range of products and services a firm will offer determine the firm's

level of diversification

In a radical innovation, a firm targets

new markets by using new technologies

PepsiCo operates in many countries and sells a wide variety of aerated drinks, other beverages, different types of chips, and Quaker Oats goods to achieve continuous growth. From this data, we can conclude that PepsiCo has been involved in

product-market diversification

are best described as voluntary arrangements between firms that involve the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services to lead to competitive advantage

strategic alliances

Which of the following is an example of an external transaction cost?

the cost of searching for a contract manufacturer

Which of the following is a feature of the maturity stage of the industry life cycle

the market reaches its maximum size

A firm follows a(n) ________ when less than 70 percent of its revenues come from a single business and there are few, if any, linkages among its businesses.

unrelated diversification strategy

Decisions relating to "what stages of the industry value chain to participate in" determine a firm's

vertical integration

is best described as a firm's ownership of its production of needed inputs or of the channels by which it distributes its outputs

vertical integration